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PROPOSAL:

Execute Contract to Support National Fuel Cell Research Center at University of California, Irvine

SYNOPSIS:

The National Fuel Cell Research Center (NFCRC) is being established at the University of California, Irvine (UCI) to develop, test, and showcase fuel cells and other advanced, low-emission power generation technologies. Founding Members of the NFCRC include the U.S. Department of Energy, Southern California Edison, Southern California Gas, and other industry partners. UCI has invited AQMD to become a Founding Member of the NFCRC. The annual fee is $40,000 with a minimum three-year membership, for a total cost of $120,000. As a member, AQMD will be involved in the NFCRC’s activities, have access to all data and reports, and receive assistance from NFCRC staff in technical evaluations of fuel cell technologies, reports, proposals, etc.

COMMITTEE:

Technology, January 16, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with the Regents of the University of California in an amount not to exceed $120,000 for a three-year membership to the National Fuel Cell Research Center at the University of California, Irvine.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

The AQMP relies on significant penetration of zero- and near-zero-emission technologies in the Basin to attain federal and state clean air standards by 2010. Fuel cells produce electricity without combustion and are emerging as a leading technology to help meet AQMP emission reduction targets. These ultra-clean electrochemical engines have the potential to work in virtually every mobile and stationary application currently powered by internal combustion engines (ICEs). Fuel cell technologies are being advanced steadily and hold strong promise to match or exceed ICEs in power density, durability, fuel efficiency, range, etc. However, major additional efforts are still needed by government and industry to overcome the many remaining barriers before fuel cells can compete in the market with ICEs and other conventional technologies. These include the need to expand fuel infrastructures; devise low-cost components and manufacturing processes; conduct prototype testing; verify durability and ruggedness; devise codes and standards; enhance safety systems; and educate the public, end users and regulators.

In 1992 the National Fuel Cell Research Center (NFCRC) was established at SCE’s Highgrove Generating Station in Riverside County, with the intent to help commercialize fuel cell technologies by addressing such barriers. UCI was associated with the design and implementation of the NFCRC, and was targeted to be a field site for fuel cell demonstration projects. After the NFCRC was established, however, deregulation dramatically affected the utility industry and SCE’s ability to continue operating the NFCRC. This, in combination with a desire to add a research and education element, led to the decision to relocate the NFCRC to UCI’s campus. After eighteen months of planning, this relocation was initiated in the second quarter of 1997.

The grand opening of the NFCRC at UCI will take place on February 25, 1998. The business offices, reception area, public information department, and project planning functions of the NFCRC will be headquartered in a 2,100-square-foot space in UCI’s Engineering Laboratory Facility. This facility will include three indoor test cell sites as well as outdoor space allocated for the testing and research of prototype fuel cells up to approximately 1 megawatt in size. Operation and testing of multi-megawatt units will take place at other nearby locations.

Proposal

NFCRC Director Dr. Scott Samuelsen -- a UCI professor of Mechanical, Aerospace, and Environmental Engineering -- has recognized AQMD’s role as a leading government agency in the promotion of fuel cells. Dr. Samuelsen and his staff have requested AQMD to become a Founding Member of the NFCRC. The annual membership fee is $40,000 with a minimum three-year membership. Existing Founding Members include the U.S. Department of Energy, Southern California Edison, Southern California Gas, and other industry partners.

As a Founding Member, AQMD will help guide the NFCRC by participating in advisory committees and all the various center activities. The annual membership fee will help support technology transfer and seed funding for innovative research concepts. AQMD’s participation is expected to add measurably to the NFCRC’s international visibility and its opportunities to directly network with the fuel cell community.

In addition to Dr. Samuelsen, the organization of the NFCRC consists of an associate director, an operations engineer, research engineers, faculty investigators, graduate and undergraduate students, two advisory committees, and support staff. The sources of income for the NFCRC include testing fees and research contracts, membership fees, and university grants.

The specific program plan of the NFCRC encompasses the following major elements:

Technology Transfer and Education -- The NFCRC will be a dynamic, participatory environment in which contributions from a variety of entities are solicited and promoted. The processes of technology transfer and outreach among these entities will be ongoing, critical elements to the success of the NFCRC. Integral components of the outreach effort will include education and training directed to university students, the technical and business community outside the university, and K-12 education. The tools for acquiring, archiving, and distributing information regarding fuel cells and advanced power generation systems will be critical elements to this activity. These tools will include a Web page on the Internet, a training center, and an exhibition center.

Prototype Testing. The NFCRC will support and conduct testing of prototype fuel cell technologies to provide critical feedback to manufacturers prior to commercial launches, and corroborate expectations on performance, reliability, etc. The pro-cess allows for the demonstration of reliability while concurrent system improvements are made. This type of testing at the NFCRC will provide showcasing, at a neutral and objective site, for potential users of fuel cell technology to critically assess the benefits and operational attributes of emerging technologies.

Research. The NFCRC’s research element will focus on six areas: market research, various types of analyses, operations research, systems research, component research, and enabling technologies research.

Benefits and Deliverables to AQMD

In return for becoming a Founding Member, AQMD will receive the following benefits and deliverables:

• Approximately 200 hours per year of consulting work from NFCRC staff to assist AQMD staff in the evaluation of fuel cell technologies and other power-generation technologies, and the review of related reports, proposals, etc.

• Membership on the NFCRC Technical Advisory Committee

• Quarterly reports on all NFCRC activities including non-proprietary data, test results and reports, technical papers and documents, etc.

• An annual report for each year of sponsorship

• First access to enrollment in workshops and training courses

• First access to site visits, tours, and demonstration sites

• First access to prototype testing

• First access to facilities use

• Participation in California marketing outreach

• Participation in topical tutorial workshops and first access to results

The proposed project addresses technologies that are included in the September 1997 update of the Technology Advancement Plan under two separate categories: 97M3-3, Development of Fuel Cell Technologies for On- and Off-Road Vehicle Applications; and 97S2-1, Development and Demonstration of Advanced Stationary Fuel Cell Power Plants.

The major anticipated benefit of AQMD’s membership in the NFCRC is that it will assist in overcoming commercialization barriers for fuel cell technologies. This, in turn, will help accelerate widescale deployment of fuel cells within both mobile and stationary sectors, leading to substantial reductions of criteria and toxic air pollutants. Such reductions would assist the Basin in meeting federal and state air quality standards by year 2010. In addition, deployment of fuel cells can lead to major multi-media environmental benefits such as improved water quality and reductions in the release of carbon dioxide, a global-warming gas.

Sole Source Justification

Section VIII, (B)(2) of the Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request for a sole source award is made under provision B.2.c.: The desired services are available from only the sole source. Specifically, these reasons are: B.2.c.(1) the unique experience and capabilities of the proposed contractor or contracting team; and B.2.c.(3) the contractor has ownership of key assets required for project performance.

UCI’s NFCRC is a unique entity conducting fuel cell research by bringing together academia, the fuel cell industry, fuel providers, and government agencies having a stakehold in environmentally benign power-generation technologies. To staff’s knowledge, there is no other similar research center in California, or perhaps the United States. The NFCRC provides AQMD with an opportunity to closely participate in the independent testing and promotion of fuel cell technologies that are needed to help meet AQMP goals.

Resource Impacts

The annual cost of becoming a Founding Member of the NFCRC is $40,000. UCI has requested a three-year membership from the AQMD at a total cost of $120,000. Sufficient funds are available in the Fiscal Year 1997-1998 Budget.

The proposed funding from AQMD for the NFCRC will be leveraged with funds from other sources. To date, UCI’s School of Engineering has contributed $350,000 towards preparation and construction of the site. Organizations that have already become Founding Members include the U.S. Department of Energy, Southern California Edison, Southern California Gas Company, Horiba Corporation, and the California Institute for Energy Efficiency. According to UCI, several other entities are on the verge of becoming Founding Members, including the California Energy Commission, Westinghouse, MC Power Corporation, and Energy Research Corporation. In sum, it is estimated that AQMD’s $120,000 cost share over three years for the NFCRC will be leveraged by at least $950,000 from other sources.

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